Cost alternatives of automated versus manual system for

Assignment Help Business Management

Reference no: EM13369732

Cost Alternatives of automated versus manual system for manufacturing equipment:

Analyze the following cost alternatives:

Scenario - Other issue was facing your company. The level of sophistication of manufacturing equipment varies tremendously across Europe. Dave and Buster leadership has narrowed the decison to two options. The first is a higher technology option in one location, and the other is a lower technology option in several locations.

Assignment - Use the total cost equation to determine costs for both options. Consider the following questions:

- Which is the lead cost alternative in Years, 1, 5, and 10?

- How much would the variable cost per unit have to be in Year 5 for the automated alternative to justify the additional annual fixed cost of the automated alternative over the manual alternative?

Annual fixed cost $1,220,000 $430,000

Variable cost/product 13.21 16.09

Estimated annual production

(In number of products): Year 1 150,000 150,000

Year 5 190,000 190,000

Year 10 350,000 350,000

Reference no: EM13369732

Questions Cloud

Describe the level of service from a recent sit-down : describe the level of service from a recent sit-down dinnerdescribe the level of service you received during a recent

Objectives for starbuckswhat are some of the preliminary : objectives for starbuckswhat are some of the preliminary objectives that you can think of for the starbucks ? how did

In its 30 years of existence hard rock has grown from a : in its 30 years of existence hard rock has grown from a modest london pub to a global power managing 110 cafes three

Evaluate freds choice of a training programfred recently : evaluate freds choice of a training programfred recently became a manager at a local hardware store that employs six

Cost alternatives of automated versus manual system for : cost alternatives of automated versus manual system for manufacturing equipmentanalyze the following cost

Retaining employeesyour friend julie is a senior accountant : retaining employeesyour friend julie is a senior accountant with a prestigious firm in the big city and her husband

Many times environmental metrics are influenced by federal : many times environmental metrics are influenced by federal state and local government regulation.how does the concept

Important information about iso 14001your ems creates a : important information about iso 14001your ems creates a management system to help you better control your companys

How can hr manager steve enforce discipline at the : how can hr manager steve enforce discipline at the workplacesteve an hr manager is in a difficult situation. he has

User Account

All Pages